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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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Boston 23, Fbi 16, Us 6, Bob 5, Scott 4, U.s. 4, Ted 4, Obama 3, Maxwell 3, Nbc News 3, United States 3, Pete Williams 3, Scott Cohn 3, Washington 3, Don Clark 2, Mit 2, John Ashcroft 2, Tom 2, Don 2, Larry Kudlow 2,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    April 17, 2013
    7:00 - 8:01pm EDT  

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after the bell sandisk a roller coaster but i think the number's pretty good. ebay also a roller coaster. i also think the number's pretty good. and i think people selling those stocks, they could be misdirected. i like to say there's always a bull market somewhere, i promise to . >> evening. i'm larry kudlow. this is the kudlow report. cnbc's sue herera joins me tonight on the set for our special coverage of today's events in boston, washington and wall street. let's start -- >> with a live report from scott cohn in boston. he has the latest on the bombing investigation. good evening, scott. >> good evening. a news briefing originally thought to happen this afternoon and then pushed back to 5:00 p.m. still has not happened yet. it has been a day of mixed signals and frustration.
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and a lot of interruptions. but in the midst of it, some of the most sophisticated detective work in the world is going on on the crime scene a couple of blocks behind me. first of all, the video. they have it from multiple vantage points, the finish of the boston marathon. and including the camera on the lord and taylor department store, surveillance camera, that is really located right across the street from the second bomb blast. and there are images of a bag on the ground that we're seeing, we don't know if that is the bag that exploded that contained the pressure cooker bomb, but there are promising leads nonetheless. even so, all day long today, investigators, technicians have been collecting physical evidence. there was considerable activity along boylston street. we saw people in white jump
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suits looking from the ground all the way up to the rooftops for more evidence that they could find. and they have as part of that investigation come up with fragments of the bombs including the pieces of the pressure cooker, wiring inside, battery, potentially circuit boards. all things that may help them figure out who did this and why. but everything was put on hold for a time this afternoon when there was a bomb threat at the federal courthouse, forced an vak and i wevacuation of the co. everything put on hold. may also have been one of the factor this is delaying the news conference. the all clear given about an hour later, but again a day of frustration, mixed signals, but still authorities and sources say? progress. back to you. >> scott, the bomb threat had nothing to do with the overall bombing, did it? >> that's correct, just one more
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thing to play in a cup and world on edge. someone apparently called in a bomb threat and authorities said that it was unrelated, nonetheless it was a huge disruption. >> scott, thank you very much. appreciate it. and we'll go back to you as events warrant this evening. now, this investigation in boston is rapidly evolving. so to help piece together what we know and where the investigation goes from here, we're joined right now by the former homeland security assistant secretary and former u.s. attorney. nice to have you here, gentlemen. welcome. bob, i'll start with you if i could. tell me what your gut tells you given your experience about whether this is a home grown terrorist, whether you think it is a foreign terrorist. do you have any indication given what we know so far? >> well, i'll use my experience to make a safe statement to say that we'll let the evidence lead to us that kind of conclusion. based upon what i'm seeing in the open sources right now, i don't think i can come to a definitive conclusion because it
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really could go either way. i think what's more important is the fact that somebody was able to exploit some vulnerabilities in our soft targets with the intent of obviously causing mass casualty, whether it was foreign terrorism or domestic terrorism, that will obviously be borne out by the fruits of the investigation. >> we appreciate your time very much. joe, i want to read you -- i have to be very careful here because a lot of news organizations have absolutely bungled some of the news coming out of this thing. we'll rely on nbc news. they have a face, joe. they do not have a name. but they have a face of someone who was seen on the video leaving the scene of the crime with a black bag. now, what does that mean? is that a person of interest, they have a face are they trying to get his identity in walk me through how you think or what you think that means. >> what it means is they're taking that piece of video depending upon the nature and quality of the camera that it came from, they're running it
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through a super computer that has algorithms in it. they're enhancing the face and attempting to make the kind of picture that will make it possible to make an identification. they will make it eventually public and ask people if there is anyone who knows this person. they probably are not very far away from that right now. >> and do you think they're waiting -- one reason the news conference is held back because they're waiting for that, joe? >> i don't believe so. i think what's going on up in boston right now has been a nightmare for federal and local law enforcement. the leaks that came out today should be an embarrassment. i'm certain that they are. there may be a couple of meetings going on with the chief of police in boston whose department tweeted out information about an arrest today which was completely erroneous. this has been embarrassing for law enforcement at the wrong time. >> so it wasn't the a.p., it was
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the tweet and the a.p. picked up the tweet? >> yes, the police department apparently tweeted out some information about an arrest. >> bob, talk to me about that and the fact that they still have made considerable progress, have they not, since the terror attack occurred. a lot of people didn't think that they would have a person of interest either in custody or even an image of that person by this point. >> well, since 9/11, the department of homeland security and law enforcement at large has really taken some really tremendous strides and using technology to be able to assist law enforcement, the cameras, surveillance cameras, all those things become part of this process. and part of it is being lucky to have the cameras pointing in the right direction at the right time. part of it is because they were planning on using those cameras for sure s for sure va surveillance in the future. so technology has enhanced the law enforcement capability.surv future. so technology has enhanced the law enforcement capability.surv future. so technology has enhanced the law enforcement capability.surv future. so technology has enhanced the law enforcement capability.surv.
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so technology has enhanced the law enforcement capability.urve. so technology has enhanced the law enforcement capability. >> does the type of of twice used give you any indication of what type of group might be involved in the incident? >> no it doesn't. because i've heard people ask the question about does it because it's a very sophisticated device, does that mean it's a less sophisticated group. it might be an have had that doesn individual that doesn't have the capability to produce them or may want to stay under the radar screen. get a hold of components that would not raise alarms. we have a pretty good system in the united states between law enforcement and private sector to report on suspicious people. so you don't want to jump to that conclusion. but the device was lethal and i think that's really what is key. >> let me just go back to the issue of this face. they have the face but not the name. they will try to identify this guy. a, is that called a person of interest, or is that too soon
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1234. >> the notion of a person of interest is quite silly. it doesn't exist in the law. it was created back in the 2000st by john ashcroft and the justice department. you either have a suspect or you don't.by john ashcroft and the e department. you either have a suspect or you don't. nobody knows who this person is. they will be identified and then they will know. but right now, this is a witness. it is somebody who is near the scene. this is not a suspect at this point because it cannot be a suspect. >> so they take he or she in for questioning, though, would they not? >> they certainly have the right if it they can identify that person to ask them if they will talk to them. that person is under no duty to do so. >> joe, how do they repair the damage? you mentioned the fact that you think this has been botched, that there is a black eye on some authorities in boston. how do they repair that damage and restore credibility?
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what would you to? >> solve the crime. quickly. >> right. >> they're trying to do that, i'm sure. >> i'm sure sure they are. one thing that has gone overlooked, this was a massive intelligence failure at the boston marathon. the fact that they were allowed to have garbage cans and other things at the finish line and along the route and that these devices were planted apparently near the end of the race or at some point after the race had started apparently, this is an amazing failure of intelligence on the scene. i know the boston police department is very upset about this. they will have an after action evaluation that will be i imagine very, very tough. but the truth is the fact that four bombs could be planted and unnoticed by anyone responsible for security is quite remarkable. >> bob, do you agree with that?
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>> well, you know, i guarantee you the procedures will be looked at for the future and lessons learned that can come out of this and enhanced security downstream without a doubt going to be the focus of the post incident investigation. >> but why were those garbage cans left in route? that has come up again and again. it appears that the black bag, so-called black bag with the bomb was not in the trash can. i don't know that. but why would they have trash cans along the way? >> well, that's a good question. i think it's one of the best practice that will be add fld to it. overseas a lot of times where this is a more common event, there has been a lot of cities that remove trash cans from their streets because of that. >> stay with me. plenty more to do. sue and i will be back. much more right after this.
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welcome back to the kudlow report. we're back with our top story, the fast moving investigation into the boston marathon bombings. >> joining the discussion is former prosecutor now in charge of regulatory enforcement. bob and joe are still with us. tom, welcome.
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i was starting to go down this road with joe, but i want you to focus in on this. you've done a lot of work on this. they have this person, they haven't identified him yet, but they will. we don't know if this is the bomber or not. they will bring him or her in. now, is it an arrest, they bring them in for questioning, is it volunteer? i want you to take us through this for the viewer and for me. >> they will try to approach this person on a voluntary basis because they won't call it an arrest even if they think this person is involved until they have to do that. >> why is that? >> all kinds of rights attach. once you arrest someone, they have a right to counsel, there is a right to speedy arraignment, they have to be charged. where are they going to be charged, feds and locals have to sort all that out. i prime minister it will go federal eventually. but the state will have the local people involved, police and prosecutors. so what are the charge, they have to be written up, there have to be press releases. >> but they want to gets a much
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out of this person before they take that next step, right? >> i can't stand the phrase person of interest, but we'll use it. they don't want to call the person a suspect. they didn't want to call it a custodial interview. they want to -- they want to question this person and gets a many statements out of the person p. and i'm not talking about statements like i did it, i did it, i did it. because those will be attacked as coerced anyway. some of the statements that you want to get are the false exculpatory. well, i didn't do it because i was here. they can objectively investigate that and find out that they weren't -- >> before we get to that point, let me ask you, you've got this person, they will find them, you're confident they will find them, they have ways and means to do that. what if the person refuses to cooperate? >> well, the person does not have to talk to anybody. he can get himself a lawyer. at that point, the united states which is running will this operation could open a grand jury, serve a subpoena on him, and make him come before the
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grand jury. he could take the fifth. and then at that point, the united states would have to decide whether or not they want to grant him immunity if they don't believe he's the perpetrator. if they believe he is, they then ve prove their case by other means. >> but i like to watch a lot of police and suspense dramas on tv. don't they hold -- i mean, csi is just the beginning for me and i read all the novels too. don't they haul this person into the room? it's got a little window, a little table. in the old days it used to have an ashtray. now i guess they can't do that. don't they begin there and start the questioning process? >> well, they try to. and depending upon the sophistication of this person, this person may either say stick it or this person may talk to them. they hope it will be the latter. >> bob, can you weigh in on the coordination or some would say lack of coordination depending on your point of view between the different agencies that are involved? it's obviously very complicated.
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you have homeland security, you have the fbi, you have the local police, as well. how difficult a situation is that when you're trying to get to the bottom of an investigation? >> so it's an enormous challenge and a great question. you have a couple of different things going on here. you have the investigation. and you've got those trying to find out who this perpetrator is. you have those who are trying to identify others that might be involved in it because there could be a follow-on event. we're always looking at the next thing that will happen. and this then you have the other folks trying to protect against events like this that need the information the investigators are collecting to understand the m.o. and likelihood of where the next attack may take place. a lot of moving parts. intelligence agency, law enforcement, federal. and there is always tension and when you have a lot of stress, people have been up for 72 hours now, working hard, a lot of pressure going on. you're going to have some of those tensions build up and that will bring out some of the more difficult things. all that being said, i'd say
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it's post-9/11. our ability to cooperate, share information, ensure people know each other before crises occur like this, it really enhances the ability to share information. so there's a lot of good things that are going on that i'd say historically would be very difficult to do. and we've overcome a lot of those barriers. still have more to overcome. >> tom, this is really the first mass attack, mass bombing attack, since 9/11. on our soil. we've had a lot foiled. some misfired. a bunch in new york thank goodness didn't happen. what does that mean? first time it's happened. there is krit tis krit tim abou intelligence. are you? >> i think we lapsed into a level of comfort here and if somebody left a bag there, how long was that bag there. i'm a little bit surprised. but let's not be too harsh on ourselves. it's perfectly understandable to kind of lapse into behaviors. and frankly, the times square
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bombing of recent note was foiled because a hot dog stand guy said something. so i don't think law enforcement is kidding when they say if you see something out of place, say something. they respond to false alarms all the time and people have to get over the reticence relating to that. if we lapsed in to old behaviors and old comfort level which is are a gift of the vinl lance of our first responders -- >> joe, you're the critic on this. and i appreciate your outspoken, one of the reasons we love you. did we lapse? have we become complacent? >> oh, yes. obviously. no question about it. but my criticism is not -- i'm not happy about it. but when you have four bags placed near the finish line of a major public event, all similarly situated within a time frame that should have been discovered had there been proper security, you not only have a
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major lapse, you have a gargantuan failure of observation and intelligence. and my heart breaks for the families and the victims and everybody there. and that's why the after action analysis has to be heartless. >> because we have to go through dress rehearsals, every single thing, bob, is that right? almost like starting from scratch. >> well, you know, joe has talked about it and i agree with it. you look at there's been somewhat of a malaise that's fallen and we fall into it in terms of our lax mindset here. and if you look at some of the things that have not gone on that we have to be paying attention to, ieds have been the most ubiquitous threat that we face here in the united states when people want to kill people. and the ease of entry into an ied capability is pretty common place. we talk about the internet and the anarchist cookbook and all the otherther sources. there's plenty of data out
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there. and from personal perspective and from a professional one, i worry about this because you look at the budgets. budgets have been cut. people that need technologies in the field and people that need the knowhow, they're no getting the information. if you compare the budgets that what we went abroad for protecting our troops in iraq and afghanistan, a billion went to the joint ied defeat office to help those troops stay alive. we're spending a fraction of that money here in the united states. and frankly, this is the biggest focus for that kind of event. we've got to be more prepared. law enforcement can only do so much because they only have so many resources to do it. and we need federal help. >> gentlemen, we have some breaking news. according to the boston police, there will be an 8:00 p.m. news conference where the fbi will make a statement. we don't know whether there will be questions and answers. we don't know whether or not the boston police -- we don't know who else will be there.
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the fbi will be making a statement at 8:00 p.m. eastern time. and we will have all the details for you. bob, thank you very much. joe, thank you, as well. tom, we'll keep you around a little bit because we have much more to talk about. president obama heading to boston tomorrow, but this evening, he took time to respond angrily to the senate vote on the expanded background checks for gun buyers. >> that vote failed. the president was very angry about it. we'll show you what he said and what he said he plans to do next. that's coming right up. please stay with us. she knows you like no one else.
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ask your doctor about cialis for daily use and a 30-tablet free trial. besides the fbi-led 8:00 p.m. news conference that we just learned about, we also have additional news on the ricin-laced letter sent to president obama and some senators. the man charged may appear in court tonight. sue, you do you know more on this story? >> pete williams is reporting that they have made this arrest of suspect.story? >> pete williams is reporting that they have made this arrest of suspect. they may have him in court later. we believe he's from tupelo, mississippi. we're not sure on his name. but pete williams reporting that story and of course cnbc will have all the details for you on that 8:00 p.m. news conference as well as this late breaking development in the ricin
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letters. >> thanks very much. now, president obama's gun control agenda was dealt devastating blow today. 54 senators including five democrats voted to defeat a proposal to expand background checks. >> a main setback for those in favor of heightening the rules. expanding gun background checks failed to win over the senate. it was a plan put together by senator joe manchin and pat toomey. it needed 60 votes to move ahead and it got only 54. president obama briefed the press shortly after the vote. he repeated the importance of gun control and expressed his own frustration. he even said the gun lobby willfully lied about the bill. >> instead of supporting the compromise, the gun lobby and its allies willfully lied about the bill. they claimed that it would create some sort of big brother gun registry, even though the
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bill did the opposite. this legislation in fact outlawed any registry. plain and simple right there in the text. but that didn't matter. >> and, larry, president obama summed it up by saying it was a pretty shameful day for washington. >> all right. all in all, this was a pretty shameful day for washington. but this effort is not over. i want to make it clear to the american people, we can still bring about meaningful changes that reduce gun violence so long as the american people don't give up on it. >> now, the national rifle association issued their own response on the vote saying this amendment would have criminalized certain private transfers of firearms between honest citizen. >> can i just raise a point here, there will be a lot of amendments now to plug this hole. i still wouldn't give up on the possibility of some kind of background check. i can't speak on the democratic side. but i am told senator ted cruz,
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senator chuck grassley will co-sponsor their own background check and apparently tom coburn will also sponsor a background check amendment. so this really may be the first of many votes coming on this issue. >> i think you're right. thank you, larry. we'll take a quick break and then the "kudlow report" is coming right back. ♪ ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪
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welcome back to the "kudlow report". let's get back to our top story. the rapid moving investigation into the boston marathon bombings. boston police say the fbi will make a brief statement at the top of the hour. but we are told now that it has been canceled. >> indeed. and i think this goes to joe's point. in the last segment that we did, there seems to be a lot of miscommunication and confusion up in boston amongst the authorities. but let's go to scott cohn who maybe can shed some light on this for us. he's been on the ground all day reporting on this. scott, first we heard 8:00 p.m., now we're hearing it's canceled. your thoughts? i know you haven't had time to really do much reporting on this.
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it just occurred. but what are your thoughts on will this? >> reporter: this literally just happened. we had been told initially last night at this time that would be 1:00 in the afternoon, then moved back, then the bomb threat moved everything back, then the fbi was going to make a brief statement at 8:00 eastern time. that seemed to be different than the major briefings that we've gotten over the last couple of days. so we were not expecting a whole lot. and this is clearly a sensitive point in this investigation. and they may have to decided it's best not to say anything at this point if they don't have a whole lot to say and that is simply speculation on that part. but at the last minute, they have decided that they are now going to cancel the briefing. there won't be a briefing for today which means we've gone now more than 24 hours without any official statements from the authorities other than the fbi
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statement that there is no suspect in custody knocking down some of the earlier reports. nonetheless, there are a lot of indications that they have made some considerable progress in the past couple of days since the attacks on the boston marathon. first of all, the video. they have the explosions from multiple vantage points. they have a finish line covered from multiple vantage points. and a great deal of attention paid to the surveillance camera in front of lord and taylor store across the street from fr where the second bomb blast went off. as we reported yesterday, there were three surveillance cameras that the boston athletic association was use to ing to mr the runners and crowds. the company that supplied those cameras said it was cooperating with authorities and providing that video. and then there is cell phone video and every other bit of video and evidence that the authorities had been appealing to the public for and they said that they got a tremendous response.
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in addition to that, they have been from almost the outset collecting physical evidence and we saw a great deal of that even today with a lot of technicians and investigators combing the street from the ground all the way to the rooftops. we know now that they have recovered fragments of the bombs and displayed some of those including pieces of the pressure cooker, pieces of the duffle bag or the backpack that they were in and the wire and the battery. and the batteries are reportedly used oftentimes in toys. which suggests that some of this was readily available household products used to create great devastate. again, all of the effort and one of the things that may have set the news conference and briefing back was this bomb scare at the federal courthouse that proved to have nothing to do with the actual bombing, but it evacuated the courthouse for a time. set things back.
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and just added to this day of confusion and mixed signals and a lot of frustration. but again, it seems like progress. >> well, we'll leave it on that not. scott, many things. we'll let you get a little rest. thank you so much. and we are back with tom kurran. also joining us is an attorney and former fbi special agent in charge of the new york and houston divisions. and don, i think i'll start with you given the fact that we now have the fbi statement appaerntdappaerntd parentsly not going to take place. we've been weighing in on the difficulty of coordinating all these different agencies in trying to solve this crime. give me your thoughts having been the special agent that you were and having to deal with situations like this. >> well, you know, i think it's a very delicate chore of getting everybody together and working all in the same direction. keep in mind over the years and years past, that law enforcement
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has been criticized quite a bit about maybe not cooperating, not getting together and getting the information, the right information, and the key here to the investigation that we have come to learn is that we've got to get the evidence to be able to move forward in any type of investigation and any charges and so forth. so it's a delicate process and it does take time to do it. >> let me just continue this. i'm disappointed. i'm not here to criticize anybody. that's not my role. but this is a morel thihorrible that happened. the numbers keep rising. people of boston could like hope. if you have this guy, this so-called person of interest, if they have identified -- if they they have fingered somebody, why doesn't the fbi or the boston police chief go out at 7:00,
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8:00 and just say that, say here is where we are and here is where we're going next and we are making progress. we have this person in our sight and give people in boston and around the country who are following this story daily, hourly, give them some hope. what's wrong with that? >> well, first of all, you're right. that people need to know what's going on and part of the job of law enforcement -- i'm a former assistant u.s. attorney -- is to explain to the people what's going on. but i will say two words as a corrective at this moment. richard jewel. it's important that when you go out to the press you're right. and if they are double and triple checking to make sure that the person who had the duffle bag really had "the" duffle bag, i won't criticize them for that. >> hang on. okay. i get what you're saying. i'm not asking them to name anybody. i don't have that information for heaven sake.
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all i'm saying is -- i'm reading from the nbc news. we're being careful because there has been a lot of bungling of the news. nbc news says they have the face but not the name the someone seen on video leaving a black bag near the scene of the blast. why can't the fbi or the -- stand up and say that. and here's what happens next and we want you to know we are serving you, we are doing our best. that's all i'm asking. >> let me say two things. i'll speak as a unremember arun. people drop bags at long distance races all the time. you want to identify the person who dropped "the" bag. you don't want to identify somebody who dropped a pair of sweatpants and ruin their life and frankly, i saw people joking about lynching on twitter today. that would be a bad -- >> there had to be more than that. tom, do you agree with that?
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again, i don't -- >> as a taxpayer, the richard jewel point is rely well takwea also as defense lawyer. as a prosecutor, i think it's great that the fbi canceled the. if you don't have anything to say, shut up. don't say anything. p. >> but isn't it -- >> then don't schedule it in the first place. >> that's right. >> they're scheduling this and then -- that's what's got me so ago gra straigvalted. >> let them do their jobs. they do it well. give them a shot. >> may i say something? >> yes, weigh in. >> i mean, i think you're talking about an investigation. you're talking about rights of the citizens and gathering evidence and things that need to bring people to justice and the
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right people. not going out to tell people that, hey, we've got this or that. that's unrealistic. that's not the way law enforcement should work. >> and there were a lot of leaks today. there were a lot of leaks today that led to misinformation and it led people to believe that a situation had developed that apparently hasn't. we were very cautious about that and i have to give kudos to scott cohn who said what the a.p. is reporting is not the way it usually works. they usually don't say someone is going to be arrested and taken to the courthouse. but those were the leaks that got out there. so as the news -- that's what the news media was fed by people who were apparently involved in the investigation. that's what's created this whole situation. >> don clark, old friend, i'm not asking to name names. believe me. you but i hate to see a 24 24 hour period go by without some
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kind of update to the people in boss doton and the families involved. >> i understand that. >> this 24 hour period, though, is going to be disregarded if they get the right person, they build a proper case, they have the evidence and they prosecute this person company her rent coherently and effectively.her coherently and effectively. >> i want to say one last thing. you're both right that it's appeared to be amateur night at the follies. there is supposed to be a joint terrorism task force. they kooshd natucoordinated wit state and local officials. many years ago i was an intern up in the u.s. attorneys up in boston. those are dedicated professionals. there is supposed to be a structure that's in place that has the coherence to stand up to the stress of this moment.
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>> i think they need -- okay. that's fair enough. >> excuse me. this is not stress in terms of something that's really terrible. this is a delicate investigation that the law enforcement has to go about. and i know that the citizens want to know. and we all want to know and have information about what's going on. but the law enforcement cannot let that information out now and the citizens have to trust the law enforcement that they are going in the right direction. and trust me, there are enough opportunities out there for people to identify when something is going wrong. let the law enforce the do tmen job. we don't need it overnight, we just need it right. >> their job is not to talk to the press. >> we'll come back later and pursue this. remember, folks, we'll keep you updated on anything that develops, if there are any new
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news conferences scheduled, we'll try to help you on that. it was a dramatic day on wall street, too. and we'll try to get to the bottom of that. and i want to find out what kind of case might the fbi and other authorities really wish to prosecute when they find these criminals as we know they will find them. kudlow. i'm here with sue herera. we'll be right back. [ male announcer ] this is betsy. her long day of pick ups and drop offs begins with arthritis pain... and a choice. take up to 6 tylenol in a day or just 2 aleve for all day relief. all aboard. ♪
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we'll get back to more coverage of the investigation into the boston marathon bombings in just a moment. but we did want o want to turn s briefly. dow down 138 points. let's bring in art hogan. art you can wh art, what in a nutshell happened today? >> we had a continuation of the concern that the market is facing more headwinds than tail winds. what happened was disappointing earnings and guidance knocked the wid ond out of sales to apspell. so the message was one of are earnings going to be good enough in the first quarter. we continue to see softness in commodities. and economic data actually today was better than not. if you look at the beige book,
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we see very good signs both in residential real estate, home construction, the auto sector. everything except for things that are touched by the defense sector which is sequestration. so more good news than bad news, but we have a market that can't make up its mind. >> but we've been looking for a pull back. we went so far so fast since the beginning of the year. i'm sensing you don't view this as a change of the trend overall, but maybe a pause that refreshes? >> that's a very good pint. it's almost like a census call that we need to pull back. from the lows to the highs, we have pulled back about 2.6%. so certainly not a correction. we haven't had a 3% pull back in 2013 and we experienced the best and worst days in the market this week. so starting to see increased volatility, but we're seeing lower highs and lower lows. so that's maybe the way we walk into something that is more than 3%, a 5% correction would
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certainly be what consensus is calling for. >> art, just putting all the details aside, i've said that i guess the last night or two, i felt, look, that this boss goto bombing will be solved. no question. but i think it gave people an excuse in the stock market, i think the same with gold. i think the drop in gold is a very positive signal for the longer term economy. but i think these events coming together so rapidly, what went on in boston and the gold crack up and you mentioned commodities, it has given people an excuse to take whatever, 5% to 7% breather in stocks. >> i think that's a good point. what we don't talk about, money coming out of gold is not a bad thing. it's a positive thing in the long run for equities. other commodities especially oil, gasoline prices come down 17% from their peak. i think that's going to be a
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positive in the economy. so you have to look at the bright side of some of these things. but you're right, it's impossible to separate the emotional from the economic. and we have both going on. a tragedy occurred. it's hard to separate both. >> emotion plays a big role in the stock market. art, thank you very much. we'll resume our coverage of the boston marathon bombing investigation when the kudlow report comes right back. maxwell is not. he's on geico.com setting up an appointment with an adjuster. ted is now on hold with his insurance company. maxwell is not and just confirmed a 5:30 time for tuesday. ted, is still waiting. yes! maxwell is out and about... with ted's now ex-girlfriend. wheeeee! whoo! later ted! online claims appointments. just a click away on geico.com. arrival. with hertz gold plus rewards,
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we welcome you back to the "kudlow report". we're continuing our duncoveragf boston bombing investigation. it has been a day of we hope breaks but also confused messages. >> i'll say. also seems like it's been a day where politics have clouded the investigation. welcome back, gentlemen. mitch, behind the scenes apart from hinting the finding the unidentified person, what kind of case do you think the fbi is trying to build for whomever it will be that we know will be caught is this? >> you put the key on the right three letters. fbi is in charge because -- and
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this is my speculation, not my knowledge -- there is a federal death penalty that's available here, use of a weapon of mass destrikd destructi destruction, a bomb door considered that, a potential death apenalty case. if the case went under the state courts, there is no death penalty. so this has been a case in the beginning with the fbi in as the lead agency. >> do you agree. >> >> as mitch well knows, the procedural rules that go with the federal prosecution, the judges by and large in the federal courts, they are>> as m procedural rules that go with the federal prosecution, the judges by and large in the federal courts, they are as mit procedural rules that go with the federal prosecution, the judges by and large in the federal courts, they are as mit procedural rules that go with the federal prosecution, the judges by and large in the federal courts, they are -- rules of evidence even make it moore prosecution friendly often than not, the right to counsel on the federal level, search and cea seizure law. so when i heard it was going
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federal, it seem taos make a lot of sense to me. >> don clark, do you agree with the weapons of mass destruction, b, how do you get it out of state of massachusetts and the fbi do that withhere there is n murder charge? start with these two. >> well, first of all, this is going to be a federal case. and the laws and the rules that the fbi will go by and the agencies that's working with them will have to be under that rule. so they will be able to do and get the punishment that's warranted once this case is solved. so let them go out there and get the evidence and solve this case. and i think they will be in good shape. >> and i just ask mike the third question. if it turns out to be an international person, i don't know this that, but if it turns out to be intern naintern natiol person is there an issue intern
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nationalas opposed to military person? national person is there an issue intern national tribunal as opposed to military person?national person is there an issue intern national tribunal as opposed to military person? national tribunal as opposed to military person?international t opposed to military person? sfwlild be shocked if they tut put it into military. even the prosecutors at gitmo says it has knois not working. they tried to create something that was neither fish nor fowl. >> it may be a domestic person. we don't know. but if it turns out just for argument sake, it's a taliban person or a taliban trained person, the argument has been down through recent years you don't want them in open court because there are secrets that will come out. and we don't want to share the knowledge of those secrets with our enemies. this is an act of war. >> but it depends on how the
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person is caught. the fbi can act around the world. if they grab the guy, it's just like any apprehension anywhere else. now, if you have the cia catching him based on this or that informant, now you're getting in to different issues. but right now, i see no indication that there is a foreign thing, but even if it is, that doesn't preclude the fbi from grabbing him. >> not at all does it preclude the fbi in grabbing him. if the fbi finds out that this is the person that they feel that the evidence is there, that's the one that they will arrest. they don't care where he comes from in the world. the crime committed here and that's what they will do. >> let me echo what don is saying. there are actual statutes on the books, it is illegal for the u.s. military to grab somebody
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up in the united states and accepted them overseas. it can't be done. >> all right. tom, let me ask you this. put yourself in the middle of this task force. will there be a division, a section, someone's planning this out right now? >> there needs to be an adult in the room. >> don, tom, mitch, we appreciate it very much. that's it for tonight's show. thanks for watching. i'm larry kudlow and my great pal sue herera. [ male announcer ] the 2013 chevy silverado 1500
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>> tonight on the car chasers... you wanna hop in my ride? it's all hands on deck... >> yeah, there's something wrong. >> as we prepare for the oklahoma city car auction. i mean, if this was a person, it'd need life support. look how much it's bleedin'. but will a freak storm freeze us in our tracks? >> the roads are so icy. holy smokes. oh, [bleep]! >> [gasps] oh! >> and when bidding grinds to a halt... 11 grand? this is hurtin' me, bubba. i've gotta act fast... now we gotta make money, 'cause so far we're in the hole. or we'll be coming home empty-handed. >> tell jeff to lift the reserve. let me sell the car. let me sell the automobile. my name is jeff allen. i buy, fix, and flip cars. but i don't do it alone.